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Reward Gateway Shares Millions with Employees as Company Announces New Owner Boston Based Great Hill Partners LLPReward Gateway, global leaders in enterprise employee engagement software, announces that Great Hill Partners L.P., a Boston based technology investor, has entered into a binding agreement to buy the company from London-based Inflexion Private Equity. The deal, which values the company at £140 million GBP (US$ 217.6 million) will fuel the expansion of products and technology for HR departments and will fund geographic expansion outside of the company's current markets of UK, USA and Australia. This Smart News Release features multimedia. View the full release here: http://www.businesswire.com/news/home/20150728006563/en/ 
Glenn Elliott, Founder and CEO of leading employee engagement business Reward Gateway (News - Alert). (Photo: Business Wire) Blue Chip Clients Reward Gateway is a £189 million GBP revenue SaaS business servicing more than 1,100 enterprise clients and employing 275 people in six countries. Its technology powers employee benefits, employee reognition, total reward statements, employee communications and employee engagement. Clients in the USA include Comcast (News - Alert), Heineken, Diageo, Caterpillar, Discovery Channel and Cummins. Shared Ownership Model Pays Management and employees hold 40 percent of equity between them through Reward Gateway's shared ownership scheme. Today's deal triggers a shared payment of c. £6.5 million to all 269 employees below board level in five countries including the USA. The management team, led by founder Glenn Elliott, is staying with the company and become significant co-investors alongside Great Hill Partners. Post-deal the shareholding owned by staff and management increases to 45 percent. Fast Growth led to Category Leadership Reward Gateway was founded in London in 2006 and has grown quickly to lead the fast growing market for employee engagement technology. Revenues jumped eight fold from £0.5m in the first year of trading to £4m by 2011. Inflexion Private Equity invested at an enterprise valuation of £25.5 million in December 2010. In the past four years, client revenues have grown six-times, EBITDA 10-times and client numbers from 400 to 1,100, with acquisitions of software specialist Dazines Ltd in the UK, API Leisure & Lifestyle, the oldest benefits provider in Australia, and the opening of a successful New York office. Global Success Reward Gateway management plan to use the investment to propel the company's future US operations and further strengthen their market leading position in Australia. Reward Gateway's founder and CEO Glenn Elliott said: "We've had an amazing four and a half years with Inflexion and we are a stronger and more successful company thanks to their support. Their backing has enabled us to invest heavily in expanding the services we provide to HR and scale the business internationally. As an investor, they set the bar high and it's taken us careful consideration to find a partner that could help us on the next stage. I really am delighted to have found that in Great Hill Partners. They've been incredible since the day we met them and with their experience of HR and technology they share our vision for the product and our global opportunity." Why Employee Engagement Pays He continues, "Employee engagement has become central for a number of forward thinking organisations. They have realised that engaged employees make better decisions, as they understand more. Engaged employees are more productive, as they enjoy what they are doing. And engaged employees innovate more, as they want their organisation to succeed. Our success is testament to this" Chris Busby, Partner at Great Hill Partners said: "The business has been at the very forefront of innovating in employee benefits, reward and engagement for nearly 10 years now. We've found here a fantastic business, dedicated to the success of its clients and run by a world-class management team."
View source version on businesswire.com: http://www.businesswire.com/news/home/20150728006563/en/ |
